Updating Impressions of the Military-Industry Complex

by A. Lieberman


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Abstract

To connote a somewhat sinister relationship, or worse, between the U.S. Department of Defense (DOD) and its industrial suppliers, the phrase, military-industry complex, may be invoked. However, all of industry has a role in supplying defense requirements, whether as an active participant or on call. The contention of this article is that many industries have a role in supplying defense requirements, whether as an active participant or not. Active participation is on the basis of an employed service, with the term understood to include supply of material things as well as intangibles. The means of employing that service are consistent with employment by others of services available in normal competitive markets. Government makes use of the existence of a competitive market for deriving its requirements as an alternative to deriving those requirements from an arsenal industrial structure. Accordingly, major companies engaged in defense contracting, while planning to continue defense contracting, are taking steps, to alter their relative business emphasis to favor civilian markets.

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